The WPI inflation fell to a 10 month low of 7.24 per cent in November, from 7.45 per cent in October.
To a query on whether increasing tax would help curb gold imports, Rajan said, "the better approach for us is to make financial instruments more attractive.
"We need to see the process of gold import, if people are holding it in gold bars, then we have to see is if we can make the financial instruments more attractive".
The import of gold had declined to 398 tonnes in April- October of the current fiscal, from 589 tonnes in the corresponding period last year. In value terms, it has declined from Rs 1.40 lakh crore to Rs 1.15 lakh crore.